Ethereum and Bitcoin Rebounds After Fed Rate Hike Announcement
After the Federal Reserve of the United States announced that they will be increasing interest rates by 75 basis points, the value of cryptocurrencies rose significantly. Yesterday, in response to inflation in the United States shooting beyond 8.6 percent in May 2022, the Federal Reserve implemented the most aggressive increase in interest rates in the last 28 years.
According to statistics provided by CoinMarketCap, Bitcoin (BTC), the cryptocurrency with the greatest market capitalization, has had a price increase of 5 percent over the previous 24 hours and is presently trading around $21,339. In the last twenty-four hours, the price of Ethereum (ETH), the second-largest cryptocurrency, has increased by 10.9 percent, and it is presently trading for close to $1,135.
According to statistics provided by CoinMarketCap, the total market value of all cryptocurrencies has increased by 6.76 percent in the previous 24 hours, reaching a new high of $956.75 billion. In addition to Bitcoin and Ethereum, other cryptocurrencies such as Solana (18.12 percent) and Polkadot (11.50 percent) (20.61 percent) have also seen rises in the double digits over the course of the last 24 hours.
Nevertheless, such gains have not been sufficient to compensate for the losses that have been incurred as a result of the latest crypto market crisis, with Bitcoin falling by 30 percent over the course of the week and Ethereum falling by 37 percent over the same time period. Bitcoin has lost more than 68 percent of its value since reaching an all-time peak of $69,000 in November 2021. During the same period, Ethereum has lost 76 percent of its value after reaching a record high of $4,891.
As per statistics provided by CoinGlass, nearly $406 million was traded on the cryptocurrency market during the course of the previous twenty-four hours. During the same time frame, the most liquid cryptocurrency was Ethereum, with $160 million sold out, followed by Bitcoin with $131 million and Solana with $8.8 million.
In spite of today’s increase in price, on-chain activity has not changed across blockchains. As per DefiLlama, in the last twenty-four hours there has been a decline of 2.2 percent in the Total Value Locked (TVL) across all blockchains. Over the course of the previous day, TVL on Ethereum decreased by 2.55 percent, landing at $49.3 billion. Increases in TVL have been led by Tron, which has had a growth of 3.66 percent during the same time period.
According to statistics provided by CryptoSlam, the total amount of NFT trading has decreased by at least 10 percent during the course of the last twenty-four hours across Ethereum, Solana, Binance Smart Chain, and Flow. Aside from the cryptocurrency market, stock markets all around the world are now trading in the negative during today’s hours of operation. The FTSE index in the United Kingdom is now down 1.45 percent, the DAX index in Germany is currently down 2.08 percent, the CAC index in France is currently down 1.63 percent, and the Sensex index in India is currently down 1.66 percent.